UK records first trade surplus for dairy products

The UK trade balance for all dairy products was positive in volume terms last year
The UK trade balance for all dairy products was positive in volume terms last year

The United Kingdom has recorded its first trade surplus for dairy products for the first time since records began in 1997, according to the AHDB.

Trade balance for all dairy products was positive in volume terms in 2019, with a surplus of 95k tonnes of product, figures from HMRC show.

The largest improvements in trade balances were in skim milk and buttermilk, AHDB dairy analyst, Katherine Jack explained.

Cheese, yoghurt and butter are still trading at a deficit, though this deficit was reduced for butter and cheese.

The powder trade surplus increased. Cream trade, although small, did shift from a trade deficit in 2018 to a surplus in 2019.

The marked improvement in the trade balance for skim milk is a direct result of a shift in trade patterns across the Irish border, Ms Jack said.

In 2019, exports of skim milk to Ireland increased by 20k tonnes, while imports from Ireland fell by nearly 59k tonnes.

For buttermilk, there was a small increase in exports, but the main reason for the improved trade balance was a significant drop in imports (103k tonnes), she added.

The AHDB analyst said shipments from France, Belgium and Germany accounted for most of the drop.

In value terms, there was still a trade deficit, but it was smaller than in 2018. The value of exports grew, while the value of imports shrunk.

Ms Jack noted that butter was a notable contributor to the improvement in the value trade deficit.

This is partly because the UK imported less in 2019, but also because lower prices meant the volume deficit was worth less overall, she said.